Are you a contractor? If you work for someone else, it is important to know whether you are working for that person in an employed capacity or in a self-employed capacity as an independent contractor.
Your employment status will determine the charge to tax on income from your employment or self-employment. It will also determine the class of NICs, which are to be paid.
Umbrella Companies employ you for tax purposes and complete central returns for all their contractors. It's less hassle and more flexible for you but take home pay is typically less than that the limited company option.
The best option for you depends on your plans, 'one off' contract or 'contractor for life'? [Read More...]
Umbrella Compare takes a look at UK umbrella company service and exactly how a contractor could benefit from using the services of an umbrella company.
If, like thousands of others, you're thinking about a life of contracting you'll need to use a limited company of some description - and they come in different shapes and sizes.
Some contractors decide to open and manage their own limited company but other contractors, the ones who don't like paperwork and red-tape, prefer to use the services of an umbrella company.
An umbrella company is nothing more than a ready-made and ready-to-go limited company which, in return for a modest monthly fee deducted from your gross earnings, you can use instead of submitting yourself to the pressures of managing your own one-man limited company.
One great benefit of an umbrella company is that there are absolutely no commitments - short or long term. You can use an umbrella company for a single day or for many years - and anything in between.
The umbrella company service is specially designed for contractors to use just for the period of their contract.
When you use the umbrella company facility you don't have any of the usual hassles of filling in paperwork or having to remember when to pay your bills.
Why on earth would anyone want to fill in a load of complex and detailed forms every month when there are umbrella companies out there who will do it for you, ensure your tax affairs are correct and increase your take home pay.
The umbrella company service is the choice of today's professional contractor who requires a quick solution without the burden of setting up a limited company... company formation, accountants, payroll, dealing with HMRC [who wants to spend several hours on the phone talking to a machine].
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It's the basics... Compliance with Tax, VAT, PAYE and fiscal arrangements is mandatory for contractors regardless of whether you use an umbrella company or your own limited company.
Incredible then that there are still rogue umbrella companies and limited company accountants who expose their contractors to fraud. Umbrella Compare provides THE solution, we thoroughly vet all umbrella companies and limited company accountants that we list [Read more...].
Umbrella Compare provides a holistic overview of contracting with the aim of helping new and old contractors find the right payroll solutions. Contracting should be about focusing on the contract, not payroll, accounting, HMRC and bureaucracy.